The concept of marriage is that of helping each other out of pits of challenges. The building of credit score can never be left out of it.
Both partners most times do not have a stellar credit score. Sometimes one partner might have a good credit score while the other will either have a poor credit score or complete lack of credit history. Being a couple, it is necessary that both of you have a good credit score in case of loans and mortgages that can be obtained using one person’s name.
According to experts, people in a marriage should be both capable when it comes to credit. Jerry Nemorin, CEO of LendStreet; described credit as a lifeline. Because credit offers you easy access to resources at a reasonable price point even on an emergency.
With a FICO score of above 700, both are qualified for loans and other mortgages. Again, they will save more and spend less on purchases.
Again, if the relationship ends suddenly, the partner with bad credit will not qualify for most types of credit and will end up suffering.
How you can boost your spouse credit score:
– Make your spouse an authorized user to your account.
– Discuss honestly on the proper use of money.
– Have your mate apply for a secured credit card.
– Help him/ her qualify for a small loan.
– Unitedly review his/her credit report.
John Crossman is an example of one who helped his spouse Angela build her credit score to a perfect score of 850. According to him, Angela had no credit history when they married. Fear of the latter scenario made him pay for a series of small loan for his wife Angela to build her score.
John Crossman continued by saying that he knows Angela will live more years after him. Thus, he wouldn’t want her to have challenges getting a loan.
Which other ways can you boost your mates credit score in case he or she does not have a credit history or has made some credit card mistakes that mar credit score? Below are a few ways you can succeed while keeping in mind FICO’s traditional scoring model.
Make your spouse an authorized user to your account:
Once your spouse becomes an authorized user to your account, he/ she will automatically inherit the credit history you have. Is a way of lifting your spouse out of a poor credit score.
David Yu, a financial planner from California, is another example of one who helped his spouse improve her credit score from 600 to 740. He made her an authorized user to his account and she signed up for a new credit card. She had been low on credit score due to some credit mistakes she made in the past.
According to Yu, his wife never closed an old account rather she opened a new account through Capital One. There were no charges on the new account but the annual fee was paid yearly.
He made his wife an authorized user to four of his accounts. None of the accounts had balance but they all had a combined credit limit of $140,100 and a 40 percent balance to limit ratio.
Help him/ her qualify for a small loan:
Have your spouse sign up for a personal loan with a mild interest rate. This way, your spouse’s score will increase provided you pay your interest on time and in full.
Yet Eric Bowlin a real estate investor is another befitting example. He had his wife Jun a native of China secure a small loan and she built a credit history.
According to him, his wife was not allowed to be a signatory on the loan with which they purchased their first house because she would have jeopardized the chances. After that, they planned on setting that straight.
Jun secured a low-interest loan with a year repayment plan but deposited $2,000.When the repayment was completed, Jun got her own credit card and a small credit limit. Her credit score also increased to 780; said, Eric Bowlin.
Have your mate apply for a credit card
Applying for a new credit card is another great way of building your score. It doesn’t require a good credit score to qualify for a secure account all you need is an initial deposit to establish your credit limit. If you maintain an up to date payment, after a few months you might qualify for an unsecured card.
Unitedly review his/her credit report:
If your spouse has been reasonable with credit but still have a less than stellar credit score, then, there might be some errors down the line. Request for your spouse credit report from each of the credit bureaus, the Equifax, Experian, and TransUnion at AnnualCreditReport.com. Happily, every cardholder is qualified for a credit report yearly. Again, you can also check the score at CreditCards.com.
If you discover any error from the credit report, have a dispute filed immediately with one of the credit bureaus. Once it is rectified, your lost credit score will be restored.
Discuss honestly on the proper use of money:
If a massive difference exists between your credit score and your mate credit score, then your money management lifestyle differs greatly too. One party is definitely more reasonable with credit than the other. In this case, let the mate with a lower score get counseled by the other and let the more reasonable mate manage the family budget.
According to Washburn, Carolyn Washburn a professor of family consumer science at Utah State University, it takes time to have all these fixed but couples need to identify their money management lifestyle. Does your mate spend more or does he/ she save more?.
Be polite and handle this in a mild way. If you become confrontational, the other party might feel scolded or unreasonable and this could lead to an argument without success.
Credit is a building block of your family’s future:
Just as healthy food is vital for your family’s health, so also healthy credit management is necessary for your family’s financial wellbeing. It benefits your family when handled mutually. If one person is higher on the credit ladder, let him/ her help the other mate up the ladder so that both of you will be fit to handle the expenses involved in marriage. With an amazing credit score, you can handle your house rent, travel expenses, college fees, hospital bill, and others.